a) Terms / rights attached to Equity Shares.
The company has only one class of equity shares of par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval by the share holders at the ensuing Annual General Meeting.
In the event of liquidation, the shareholders are eligible to recover the remaining assets of the company after distribution of all preferential amounts, in proportion of their shareholding.
General Reserve:
The General reserve is created from time to time by transfer of profits from retained earnings to general reserve for appropriation purposes. As the General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, hence General reserve is not required to be reclassified subsequently to the statement of profit and loss.
Retained earnings:
Retained earnings includes the Company’s cumulative earnings less losses.
Remeasurements of the net defined benefit Plans:
Remeasurements of defined benefit liability comprises actuarial gains and losses and return on plan assets.
The Board of Directors in their meeting held on 25th May, 2018 proposed a dividend of Rs. 5/- per share. The proposal is subject to approval of shareholders at the Annual General meeting to be held on 13th Aug, 2018 and if approved would result in a cash outflow of approximately Rs. 1,205,553/- which is inclusive of corporate dividend tax of Rs. 205,553/-.
Dividend recognised as distribution to equity shareholders for the year ended March 31, 2018 was Rs. 5/- per share.
1) Corporate Information:
The Company was formed in 1919 with the main object to undertake business of sales and servicing of motor cars and at present its Automobile division situated at Churchgate is operational for serving of motor cars. The company diversified its operations in Restaurant and Banquets services at its Hospitality Division situated at Opera House.
2) First-time adoption of Ind A S:
I) Transition to Ind AS: These are the company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 23 (3) have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the presentation of an opening Ind AS balance sheet at 1st April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amount reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position and financial performance is set out in the following tables and notes.
II) Reconciliations under Ind AS 101: Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:
a) Deemed cost for Property, Plant and Equipment (PPE), Intangible assets and Investment property: Ind AS 101 permits a first time adopters to continue with the carrying value for all its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.
Accordingly, the company has elected to measure all of its PPE, intangible asset and investment property at their previous GAAP carrying values.
b) The remaining mandatory exceptions either do not apply or are not relevant to the Company.
3. Cash Flow Statements:
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of Company are segregated.
Amendment to Ind AS 7: Statement of Cash Flows
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financial activities, including both changes arising from cash flows and non-cash changes. These amendments are effective from annual periods beginning on or after 1st April, 2018.
4. Employee Benefits:
The disclosures required under Ind AS-19 “Employee Benefits” are given below:
Defined Contribution Plan
Contributions to Defined Contribution Plan recognized and charged off for the year are as under:
Defined Benefit Plan:
a) Gratuity: The liability in respect of employees is provided in the books based on the actuarial valuation. The liability is discharged by the company by making regular payments on the basis of calculation as per Payment of Gratuity Act, 1972.
Except one employee whose liability has been funded by taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the policy is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.
b) Leave Encashment: The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to each employee at the year end, valued based on salaries including allowances of the last month of the Accounting Year.
Reconciliation of Defined Benefit obligation and fair value of plan assets is as under:
a) Actuarial Assumptions
The financial and demographic assumptions on annual basis used for valuation as at the Valuation Date are shown below. The assumptions as at the Valuation Date are used to determine the Present Value of Defined Benefit Obligation at that date.
5. Operating Segment:
Segment wise disclosure of information as per Ind-AS-108 on “Operating Segment” is as below:
1. Segments have been identified in line with the Ind-AS-108.
2. Company has disclosed Business Segment as the primary segment.
3. Composition of Business Segment:
4. The Segment Revenue, Results, Assets and liabilities include the respective amounts Identifiable and amounts allocated on reasonable basis.
5. The Managing Director of the Company acts as the Chief Operating Decision Maker (“CODM”)
The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments.
6. Related Party Disclosure:
Disclosure requirements as per Ind-AS-24 “Related Party Disclosure”are as follows:
* Parties identified by the Management and relied upon by the auditors.
$ All the related party transactions were made on terms equivalent to those that prevail in an arm’s length transactions.
7. EARNING PER SHARE
The Earning per share according to Ind-AS-33 is as under:
8. CONTINGENT LIABILITIES & ASSETS AS PER IND-AS 37:
(1) CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
(i) Contingent liabilities
Directors and management based on legal opinion obtained, are of opinion that Company has fair chance of winning all these above cases and as such no provision has been made in the books of account and consequently in attached financial statements for the same.
b) Guarantees;
1) Counter guarantees of Rs. 1 lac to bank against guarantees issued on company’s behalf secured by pledge of deposits of Rs. 276,135 /- (Previous year Rs. 259,466/-).
9. MICRO, SMALL AND MEDIUM ENTERPRISES:
a) As at 31st March, 2018, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the group owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.
b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.
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